RobertB4444
Expert Alumni

Deductions & credits

What @Mike9241 says also applies to Pennsylvania.  The state requires that you make an estimated payment to cover the taxes due if you are going to owe more than a thousand dollars for the year.  In your case you don't know what you'll owe until December so the estimated payment to Pennsylvania as well as to the IRS is due on January 15th.  Assuming that you will owe more than a thousand dollars to either agency.  If you don't make the estimated payments in a timely manner then they will charge you a penalty for underpaying your estimated taxes.  

 

You can overcome this penalty in the future a couple of different ways.  You can increase the withholding amount from any income that you have - including from the investments that you are talking about here - and have that withholding submitted on your behalf just as though it were coming out of a paycheck.  If your withholding is high enough then you don't need any estimates.

 

Otherwise, you can send in your estimated payment by January 15th every year and cover it that way.  TurboTax can help you prepare estimates going forward as well as helping you figure out the safe amount to send in for the following year to help avoid penalties.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"